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SoulCycle coming to Canada with planned Toronto studio in 2017

Pricey American exercise chain is opening a Toronto studio in March, with plans to expand across Canada.

Julie Mitchell poses for a photograph at her Torq spin studio in Toronto, Tuesday, Nov. 8, 2016. SoulCycle, the pricey American exercise chain with a cult-like following, will open its first international location in Toronto this March. (Nathan Denette / THE CANADIAN PRESS)

By Aleksandra SaganThe Canadian Press

Fri., Nov. 11, 2016

SoulCycle, the pricey American exercise chain with a cult-like following, will open its first international location in Toronto this March — with plans to expand to multiple locations in the city and across Canada.

But industry insiders say it may face a more challenging ride north of the border, where some boutique spin studios operate at about half the cost of what SoulCycle typically charges its clients.

CEO Melanie Whelan, however, is bullish on the booming fitness company’s chances in Canada.

“We see tremendous opportunity in the Canadian market,” she said in a statement.

New York-based SoulCycle opened its first studio in 2006 and has since grown to 67 locations in the U.S., with four more set to open this winter.

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It’s en route to expand to at least 250 studios in the country at a rate of 10 to 15 studios per year, according to a preliminary prospectus the company filed in the summer of 2015 for an initial public offering that has yet to happen.

Andrew Alvarez of market research firm IBISWorld believes Canada’s boutique fitness market is not yet so saturated that it presents insurmountable barriers to entry — but competition is likely.

Part of SoulCycle’s future success or failure in Canada will boil down to price, he says, noting that many traditional gyms are struggling with consumer aversion to price.

SoulCycle’s pricing varies somewhat through the States, but riders in New York City, for example, pay US$34 for a single class, with no option for monthly unlimited class rates. Cyclists also need clip-in shoes, which SoulCycle rents for $3 a class or sells for $150 a pair.

By way of comparison, Julie Mitchell, the owner of Torq, an indoor cycling studio that opened in Toronto’s east end last May, charges her clients C$18 per spin class.

Still, she believes some Torontonians, especially those who have tried out a SoulCycle class before, will shell out the extra bucks for a ride there.

Mitchell herself has attended classes at several SoulCycle studios and says it’s done a remarkable job creating a unique experience with a strong following.

The company says its classes combine a full body, rhythm-based workout — what SoulCycle calls a curated cardio-dance party — with a mind/body component designed to inspire riders emotionally.

In its preliminary prospectus, SoulCycle notes how the company’s “elevated, meditative fitness experience” has drawn a following that includes numerous celebrities and generated positive publicity for the studios. Comedian Amy Schumer, for example, recently shared a photo on Instagram of her at Chicago’s Southport location.

But even if some consumers balk at the cost of sweating like — or possibly with — the stars, SoulCycle has a few advantages, including experience in Canada.

Its parent company, Equinox Holdings Inc. has brought two locations of its luxury fitness centre, Equinox, to Toronto and another will open its doors in Vancouver before the end of the year.

Also lucrative, adds Alvarez, is SoulCycle’s ability to bring in extra revenue by hosting parties and corporate events. In the States, these typically average around US$1,000, he says.

“The company may be able to get a leg or two over the competition as a result of these niche offerings,” he says.

Ashley Ander, the founder and general manager of Ride Cycle Club in Vancouver, agrees. Her gym is expanding to Toronto early next year as well.

“I feel the more, the merrier,” she said in an email.

“Each studio has its own vibe. It’s all about what works for the individual.”

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